Bank calculating rental income wrong?

[Paul Brady]

I have two rental properties

One with a $5400 mortgage payment with $6600 in rents coming in after expenses ($1,200 in profit)

Another with a $2000 mortgage payment with $3000 in rents coming in after expenses ($1,000 profit)

The underwriters are trying to tell me that the $5400 mortgage and $2,000 mortgage counts against my personal expenses but all I can use to combat these expenses is the profit I make from the rents after paying off the mortgages ($1,200 and $1,000)
So my rental income looks like a complete loss on paper even though I’m fully profitable .All they keep telling me is “well we have to go off of the net profit” and I repeatedly told them yes that is the net profit after said mortgages are paid off from the rents.

Has anyone ever had to deal with this sort of calculating or do you think the underwriters I was assigned to might not understand how to calculate rental income properly?

Thanks

[Chris Mason]

Quote from @Paul Brady:

Quote from @Theresa Harris:

If I understand correctly, they are counting the mortgage twice-once as the mortgage and the second by deducting it again from the rent as they only include the profit?

Lol yes, that’s exactly what they are doing. I’ve talked with two underwriters there and neither understand it somehow. 

 Real estate investor friendly mortgage broker in your state is your next phone call. Have your tax returns handy. 

Such a waste of time.

GL.